KanPak hosted a groundbreaking for the 195,000 square-foot warehouse for its current Penn Yan facility in Horizon Business Park.
KanPak Senior Director of Operations Bryan Bartee says the expansion is expected to be completed by Aug. 2020 in partnership with Chrisanntha Construction of Gorham, adding that winter weather may effect that target date. The addition will connect with the two existing buildings filling the KanPak site, and will expand its manufacturing line and warehouse, enabling KanPak to store a larger array of finished and raw goods, including ingredients and packaging materials.
KanPak General Manager Ryan Mitchell welcomed and thanked Penn Yan, Yates County, and New York State officials for their help in seeing the project come to pass with tax and investment incentives. With the expansion, the company will hire 15 new employees and will retain 197 existing jobs.
According to Finger Lakes Economic Development Center CEO Steve Griffin, the company’s total projected capital investment is $20.7 million. Griffin calculates the total economic benefit to the community, taking into account construction and facility build-out costs, PILOT payments made, and total wages paid for new hires, will total $33.3 million.
Empire State Development is also helping facilitate KanPak’s expansion with up to $600,000 through the Excelsior Jobs Program in exchange for those job creation commitments. ESD is also providing a $150,000 capital grant for the project.
As part of the project, KanPak is constructing a new private wastewater treatment plant on-site. The benefits of this multi-million dollar wastewater treatment system will be significant. Dairy waste products can be disastrous to the function of municipal sewage treatment systems. With KanPak’s new wastewater system, considerable strain will be taken off the Penn Yan Municipal Wastewater Treatment Plant.
According to a KanPak press release, the expansion provides increased temperature-controlled warehousing space for aseptic products, including two ambient temperature zones (70 F for raw goods and 80 F for finished goods), that fosters a more sustainable solution to the traditional cold chain process. KanPak’s aseptic method enables the storage of perishable products like milk or ice cream for extended periods of time without spoilage, providing customers with safe and sustainable option for their stores.
“KanPak has seen tremendous growth over the past few years, and this addition allows our Penn Yan facility to best meet our customers’ increased demands for aseptic dairy products,” said KanPak CEO Larry McGill. “We look forward to delivering more innovative options to our valued customers as well as creating additional career opportunities for our Penn Yan team.”